The Keyhole makes observations about consumers, brands, ads, & marketing, through a predictive customer loyalty lens. Most marketing is ineffective to today's bionic consumer, given undifferentiated products, loss of "brandness," & hard to come by profits. Marketers talk about "engagement" but nobody seems to be doing a very good job measuring or integrating it into what they do & it shows! The Keyhole opens a dialogue on this subject & suggests real-world solutions with the marketing community.

Friday, July 28, 2017

Chipotle is reeling from another norovirus
outbreak. But according to Chief Marketing and Development Officer, Mark
Crumpacker, the right advertising tone (and a new menu item) will be the
cure-all. It’s a planned queso rollout.

It took Chipotle
twenty-two years to transmute from burrito stand to $23 billion brand. They
showed up on our Customer Loyalty Engagement Index (CLEI) radar screen 11 years
ago and moved up the Fast Casual restaurant loyalty list to take the number one
spot. Being #1 looked like their reserved table, that is, until the series of
disease outbreaks and a loss of customer engagement moved them down the list.

After seven outbreaks of
E. coli bacterium and salmonella-related illnesses, it can’t have come as any
surprise to anyone when Chipotle posted its first loss as a public company.
They reported same-store sales fell almost 30%, with operating margins down
nearly 75% during its first quarter in 2016. Customers relegated them to #6 on
our list, in table terms someplace halfway between the banquette and the
toilets in the Fast Casual restaurant space.

Unsurprisingly, the drop
in CLEI ranking – always accompanied by lower same-store sales and margins –
would seem to be self-evident and inevitable. You can’t reasonably offer
consumers “quality,” “freshly prepared food,” and then have them get sick
without expecting some repercussions! But sick as they might have been, when it
comes to loyalty, engaged customers are six times more likely to give a brand the
benefit of the doubt in adverse circumstances – like Chipotle customers did
with the initial outbreak. And even the six that followed.

But too many stomach
bugs and bad news was ultimately too much for customers (albeit engaged
customers) to stomach. That well of forgiveness isn’t bottomless. So the brand
that started the “fresh movement,” had to look for a fresh start for itself. But
it’s tough to come back, especially in light of new competition from the Paneras,
Shake Shacks, Chick-fil-As, and Five Guys Burgers of the world.

In 2017 Chipotle ranked
#9 of 18 National brands. As these rankings always correlate very highly with
consumer behavior and engagement with the brand, given the two newest
outbreaks, we expect that Chipotle will be moving further down the list. But
Chipotle apparently has a solution to the loss of customer brand engagement and
loyalty.

Personally
we think it needs less noroviruses. Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Wednesday, July 19, 2017

In a national survey conducted among
Millennial female shoppers July 10th through 15th, Brand Keys, the New
York-based brand engagement and customer loyalty research consultancy (brandkeys.com),found that 38% were negatively disposed to considering
purchasing Ivanka Trump’s line of clothing or shoes.

In the initial 2016 wave, it was
hypothesized that consumers could separate Brand Ivanka from Political Advisor
Ivanka. Nine months later that does not seem to be the case.

The most recent wave of the brand study – conducted among
1,005 female Millennial shoppers (balanced for political affiliation) who had
spent at least $250 on a dress or pair of shoes in the past 12 months – found
only a third (33%) are still extremely
or very willing to keep Ivanka Trump
brand on their shopping lists. That’s down 18% from the initial benchmark wave
last October.

Respondents were asked, “In light of Ivanka Trump’s
involvement with the Trump administration, how likely would you be to consider
buying her line of shoes or clothing?” Responses were as follows:

10/162/177/17

Extremely Likely18%16%15%

Very Likely33%22%18%

Somewhat Likely32%30%29%

Not Very Likely11%18%24%

Not At All Likely6%10%14%

While the political ramifications of Ivanka Trump’s personal
involvement with the current administration cannot be ignored, uproars
surrounding her father, and now her husband, Jared Kushner, currently a senior
advisor to her father, the President, and now her brother, Donald Jr., cannot
be ignored either and seem to be affecting the Ivanka Trump brand as well.

From a legal perspective Ms. Trump entered into a trust for
her business, turning the day-to-day control over to Abigail Klem, a top
executive, and transferred its assets to a new trust overseen by relatives of
her husband. Ivanka will no longer appear in advertisements
and she has separated her business and personal social media accounts.

But as marketing history has proven,
there’s a world of difference between what’s “legal” and what’s a “brand,” and
consumers know it More importantly they act upon it.Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Thursday, June 29, 2017

The 15th annual
Brand Keys survey of American brands (in over 100 categories) has revealed a
dramatic shift in consumers’ perceptions of brand “patriotism.” Jeep, Disney,
and Levi Strauss continue to top an otherwise dramatically re-drawn list, with
brands like Fox News, Tesla, MSNBC, and Twitter joining the 2017 list.

Our most
recent Presidential election and its political aftermath has created higher
levels of political debate and has raised more contentious issues. It has
divided political parties, and it has divided consumers and their brands. And
it has also dramatically shifted what drives the perception of patriotism.

In this year’s
national sample of 4,860
consumers, 16 to 65 years of age, balanced for political party affiliation, were
asked to evaluate, which of the 280 brands included in this year’s survey were
most resonant when it came to “patriotism.” Some of the brands leading 2017’s
patriotism parade are included below. Bolded
names indicate the new brands that marched onto this year’s list.

1Jeep

2Levi Strauss

3Disney

4Coca-Cola

5Ford

6Hershey’s / Twitter

7Ralph Lauren

8Jack Daniels

9Sam Adams

10MSNBC

For the
complete list, and a look at how 2017 has change from the first time the study
was conducted 15 years ago, click here. A good deal of what used to be forthright
marketing is now being galvanized and politicized, with some brands wrapping
themselves more tightly in the flag than ever before.

Anti-Trump
groups have urged consumers to boycott companies and brands seen to back the
President, while Trump partisans have created their own lists of preferred and
objectionable brands. And whether you’re politically left, right, or center,
what’s clear is these consumer attitudinal shifts come with a set of newly
re-written rules of branding, expressed every day via news shows like Fox and
MSNBC and social networks like the president’s favorite, Twitter, and
Millennials’ Instagram.

While
the Brand Keys annual survey focuses on for-profit brands, assessments for the
United States armed services – The Coast Guard, Air Force, Army, Marines, and
Navy – are always included in the study. Not unexpectedly, consumers gave all
branches of the armed services a patriotic engagement ranking of #1. We
recognize that again this year and thank them all for their service.”

Believability
and authenticity are the keys to emotional engagement. The more engaged a
consumer is with a particular emotional value and the associated brand, the
more likely they’ll trust that emotion and act positively on that belief. Where
a brand can establish real emotional connections, consumers are six times more
likely to believe and behave positively.

Politics
has made itself more emotionally felt this year than ever before, particularly
when it comes to how consumers look at brands through a patriotic lens. But one
thing both parties can agree upon, however, is brands that can make meaningful emotional connections with the consumer always have a strategic advantage when
it comes to the battle for the hearts, minds, and loyalty of consumers. If you can make that connection, consumers will not only stand up and salute, more importantly, they'll stand up and buy.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Thursday, May 25, 2017

It was recently reported that the U.S. automobile
sales’ hot streak has cooled. Ford and GM reported declines of 6% and 7% YOY,
respectively.

Overall vehicle sales are down nearly 5%, and
inventory is taking much, much longer to move off the lot. And sure, the usual
summer sales will be held, but today discounts are never enough to engage
consumers, no matter what category you’re in.

If, however, an auto brand (or a brand in any other
category) can accurately identify their category Ideal, the high-contribution
values consumers desire, and can actually measure real consumer expectations,
brands will be six times more likely to make a sale!

Six time more likely to buy more of your product
and service more often. Six times more likely to invest in you if you’re
publically traded! And for those of you just interested in the social universe,
six time more likely to interact with you socially.

Want to see how predictive metrics can identify the
changing Ideals consumers expect from their cars (or any other products or
services that are looking for increased sales. And social involvement)? We
invite you to read our most recent Admap
contribution, "The values that drive car choice.” Our predictive metrics work in
any B2C and B2B category.

It was Elon Musk who noted that selling an
electric sports car created an opportunity to fundamentally change how customers
saw a brand – but only if you were able to meet consumers’ real and
unarticulated expectations.

Which is absolutely true.

But it helps tremendously if you can actually
measure them.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Sunday, May 14, 2017

Clothing appears to be the gift-of-choice for Mother’s Day this year.
Eighty-nine percent (89%) of consumers plan to celebrate Mother’s Day 2017 and
clothing is this year’s big winner, according to the annual Brand Keys Mother’s
Day survey. Celebrants intend to spend on average $220.00 this year, a 7
percent increase over 2016. Men, following a long-standing tradition, intend to
spend more than women, reporting an anticipated average spend of $242. Women,
an anticipated $198 spend.

Once again, tradition has trumped tech. Cards, meals, and flowers have
become ‘price-of-entry’ for the holiday. But when it came to more substantial
gifts, clothing showed the greatest change from last year – up 10 percent.
Jewelry was up too, by seven percent. Spending on tech-related gifts was
generally unchanged, with only 13 percent indicating that category of purchase.

More-and-more, Mother’s Day has encompassed a broader spectrum of
relationships and has becomes a more universal celebration. The holiday
celebrant-range includes virtually everyone: moms, wives, step-moms, female
relatives and friends, divorced and single-parent households. It crosses
cultural, ethnic, and religious boundaries, making it a real opportunity for
retailers – an occasion nearly everyone celebrates.

Methodology

As part of Brand Keys’ annual Customer Loyalty Engagement Index, 6,205 men
and women, ages 18-65 from the nine U.S. Census regions, were asked if – and
how – they planned to celebrate Mother’s Day this year. Most consumers
indicated multiple gift purchases. This is Mom we’re talking about, after all.

What Consumers Are Buying Mom

(Percentages in parentheses indicate changes from 2016 with a margin of
error of + 2%).

Preferences for shopping venues reflect this year’s preference for more
traditional gifts and remained generally unchanged from last year, although
Department Stores, were down again, this year by four percent. Catalogues were
down again this year by another four percent. Discount and Specialty Stores
were at the top of consumers’ list of places to shop for Mom because consumers
regard them as ideal venues for apparel and jewelry.

Where They Are Shopping

Discount
Stores 55% ( --- )

Specialty
Stores 55% (+5%)

Department Stores 40% (- 4%)

Online
Stores 30% ( ---)

Catalog 2% (- 4%)

There’s a saying that goes, ‘a Mother always has to think twice; once for
herself and once for her children.’ That said, this year most consumers don’t
seem to be thinking twice about celebrating Mother’s Day.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Thursday, April 20, 2017

Tomorrow, April 22nd is the 47th
anniversary of Earth Day, so the appropriate time to release our list of the top-25
greenest brands in America. Of 740 brands included in this year’s 22nd annual Customer Loyalty
Engagement Index, 49,168 customers deemed these brands as authentically,
resolutely, and significantly “green.” And when it comes to this particular
value, high engagement is an indicator of positive consumer behavior in the
marketplace. And the political arena, too.

This year EarthDay.org campaign is,
“Environmental & Climate Literacy.” Given the recent politicization of
climate change, the campaign is designed to help make people more fluent in the
concepts of climate change. A more climate-literate citizenry, it is hoped,
will end up being the engine that fuels green voters and laws and policies that
advance environmental protection.

Brands
can’t simply play the environmental awareness card as part of a CSR or PR
campaign anymore. In just the same way politicians are going to be held to the
fire according to voter standards, so too are brands. Brands will have to do it
in ways that meaningfully support a sustainable future that’s both palpable and
believable to the consumer because when it comes to brands, consumers will end
up “voting” with their wallets. And while it is the hope of many that
corporations are looking to find ways to do business more sustainably, it’s
worthy of note that brands are
getting better at being “green.”

It’s been independently validated is that brands best able
to meet expectations, particularly those that are more emotionally-based – saving
the planet, for example – ultimately do better than those brands that don’t or
can’t meet those expectations.

And when it comes to the bottom bottom-line, unlike many
things in consumers’ lives, it’s precisely as Albert Einstein observed, “Look
deep into nature, and you will understand everything better.”

Including brands.

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

Sunday, April 02, 2017

Yesterday
was Major League Baseball’s Opening Day. It's always a big moment, but this
year it’s considerably bigger

Based
on the 25th annual Sports FanLoyalty Index from Brand Keys, the New
York-based brand engagement and customer loyalty research consultancy, and
according to 17,852 fans, Major League Baseball was rated #1 in fan loyalty for
the first time in a decade, beating out the National Football League,
perennially Major League Sports’ loyalty leader.

Fan loyalty ratings never lie. They’re a leading-indicator of
behavior and profitability, and they always tell us what fans are going to do
when it comes to increased TV game viewership and purchases of licensed
merchandise.

MLB’s 2016 World Series was the highest rated and most-watched series
since 2004. For the Fall season, the World Series ranked as TV’s top show for
adults 18-49 years of age, topping Sunday
Night Football. MLB’s leadership, which recently eliminated the four pitch
intentional walk in order to “speed up the game” may be tinkering too much, there
are other powerful and emotionally-based loyalty drivers that need to be taken
into account when it comes to fans, and those can’t be rushed. The percentages
next to each loyalty driver indicates the contribution each makes to fan
loyalty and league engagement:

History and Tradition (30%):

Are the game and the league part of fans’ and community rituals,
institutions, and ‘tribal’ beliefs?

Fan Bonding (29%):

Are players particularly respected and admired?

Pure Entertainment (21%):

Win-loss ratios for sure, but more importantly, how entertaining is
their play? Is it a consistent experience year-to-year?

Authenticity (20%):

How well they play as a team. Do they seem unified? Does it involve
both skill and strategy?

For 2017 league loyalty rankings were found to be as follows:

Major League Baseball

National Basketball Association

National Football League

National Hockey League

NFL ratings took a nosedive throughout its last season, which is
troublesome because live events are supposed to be the last bastion of defense
against the Internet. This is the second consecutive year the Super Bowl has
failed to set a new ratings record. Pre-election NFL ratings were down by 12
percent Year-Over-Year and ratings for the 2016-17 season were down 9 percent
YOY and were off 6 percent through the playoffs.

The National Basketball Association, consistently ranked #3 in terms
of fan loyalty, moved up to the #2 spot this year. Not-so-coincidently NBA’s
viewership increased from last season on all four networks: ABC was up 9
percent, ESPN up 10 percent, TNT up 1% and NBA TV games were up 19%.

The 2016 Stanley Cup Final was one of the lowest-rated NHL title
games since the sport returned to NBC 11 years ago, and is again ranked #4.

Via interviews with 250
self-declared fans in each team’s local market, current 2017 MLB top-5 and
bottom-5 brand standings are listed below:

Top-5

1. Chicago Cubs (+6)

2. Washington Nationals (+3)

3. Los Angeles Dodgers (-1)

4. Boston Red Sox (+4)

5. San Francisco Giants (-2)

Bottom-5

30. Arizona Diamondbacks (-1)

29. San Diego Padres (-2)

28. Colorado Rockies (--)

27. Milwaukee Brewers (-5)

26.
Minnesota Twins (-10)

Loyalty is incredibly powerful and emotional. And when it
comes to loyal baseball fans, their attitudes echo what pitcher Gaylord Perry once
noted, ‘The only trouble with baseball is that it’s not played year round.” In the meanwhile, for the rest of you fans for the rest
of the season, “Go (INSERT YOUR TEAM’S NAME HERE)!”

Find out more about what makes customer loyalty happen and how Brand Keys metrics is able to predict future consumer behavior: brandkeys.com. Visit our YouTube channel to learn more about Brand Keys methodology, applications and case studies.

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About Us

Robert Passikoff, founder and president of Brand Keys, is a sought-after speaker and global thought leader on engagement and loyalty. He has pioneered work in these areas, creating the Customer Loyalty Engagement Index and the Sports Fan Loyalty Index. New York University’s communication school has declared Dr. Passikoff “the most-quoted brand consultant in the United States.”